C9.2.2 Identifying Benefits

 

The second step is to identify and quantify all benefits anticipated as a result of successful implementation of the proposed action.

 

  1. Identify all monetary benefits that will be experienced upon implementation and thereafter. These benefits include:
    • direct profits from products and/or services
    • increased contributions from investors
    • decreased production costs due to improved and standardized processes
    • increased production capabilities
  2.  Make a list of all non-monetary benefits that are likely to be experienced. These include:
    • decreased production times
    • increased reliability and durability
    • greater customer base
    • greater market saturation
    • greater customer satisfaction
    • improved company or project reputation

 

Again, assign monetary values to the benefits identified above. Also state these monetary values in present value terms.

 

It should be noted that there may be both primary and secondary benefits.

Primary benefits accrue from physical effects of the project. In the case of a flood defence project, this may for example, reduce the costs of flood damage, business disruption, emergency response and recovery. There may also be indirect primary benefits that result from reduced costs of the disruption of business, transport networks and public services and reduced costs of emergency response and recovery.

Secondary benefits refer to additional benefits which might result from the economic linkages of a project. Again, using the example of a flood defence project, this may include the business and employment opportunities which occur from the project implementation itself as well as the increased investment in the floodplain which may result from a sense of preparedness or security after the project is finished.

 

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